Australian stocks: Weaker close despite bumper BHP profit

The Australian sharemarket closed weaker, despite mining giant BHP Billiton posting the highest interim profit in Australian corporate history.

At 1615 AEDT close, the benchmark S&P/ASX200 fell 29.2 points to 4835 while the all ordinaries fell 26.7 points to 4781.5.

On the Sydney Futures Exchange, the March share price index contract was down 23 points 4803, on volume of 16,466 contracts.

Intersuisse director in Melbourne Howard Elton said the negative move by the market was surprising, considering some of the big profit numbers announced today.

"I think this is characteristic of some nervousness in the market, but I think it is a bit overly-nervous and we are still confident about the way things are going," Mr Elton said.

"Some of these results that came out today are excellent, there were some tremendous numbers from these companies, including BHP and Commonwealth Bank."

BHP Billiton today announced a 47.8 per cent lift in net profit to a record US$4.364 billion for the first half - the biggest interim profit in Australian corporate history - pushing its shares 19 cents higher, or 0.79 per cent to $24.35.

Commonwealth Bank was the other positive on the day, closing 16 cents higher to $43.98 after announcing an 18 per cent increase in first half net profit to $1.999 billion.

On Wall Street overnight, US stocks shot higher as oil fell to its 2006 low and data showed stronger-than-expected retail sales.

The Dow Jones industrial average was up 136.07 points at 11,028.39, the Standard & Poor's 500 Index was up 12.67 points at 1275.53 and the Nasdaq Composite Index was up 22.36 points at 2262.17.

Elsewhere, the market was weighed down by Woodside Petroleum which closed 2.64 per cent lower, or $1.09 to $40.21, after the company said its annual profit fell slightly in 2005 despite strong oil prices.

And resources giant Rio Tinto also lost ground, shedding 53 cents to $71.84.

Among other big movers on the day were financials Macquarie Bank, which closed 92 cents lower to $61.90, and QBE Insurance, which fell 40 cents to $18.95.

The banking sector was mixed with Westpac Bank 37 cents weaker at $23.24, ANZ down 21 cents to $24.71 and National Australia Bank gaining one cent to $35.37.

Media stocks were also varied, with Publishing & Broadcasting dropping 32 cents to $15.88 and Fairfax slipping two cents to $3.99.

But News Corp stock was ten cents stronger at $22.80 while its preferred scrip jumped 15 cents to $21.70.

In the aviation sector, Virgin Blue was three cents stronger at $1.71, while rival Qantas slipped five cents to $4.05 ahead of its half-year results tomorrow.

Among the telcos, giant Telstra fell two cents to $4.04 while its rival, Optus-owner Singapore Telecommunications gained one cent to $2.21.

Retailer Woolworths fell 24 cents to $17.35 and Coles Myer softened four cents to $10.16.

But David Jones gained 11 cents to $2.46 and Harvey Norman took on four cents to $3.30.

In other news, AWB shares have been placed in a trading halt, having last traded at $4.25.

Shares in builder and developer Leighton Holdings gained 15 cents to $18.00 after posting an interim net profit of $118.1 million, up 25 per cent on the same period last year.

Elsewhere, Wesfarmers fell 71 cents to $35.99 and Suncorp-Metway lost 36 cents to $21.05.

The spot price of gold in Sydney was US$546.75 per ounce, up US$10.25 on yesterday's closing price.

Gold miner Newmont was 10 cents higher at $7.40, Newcrest was down 74 cents at $23.98 while Lihir fell three cents to $2.05.

The top traded stock by volume was BHP Billiton after its result, with 59.52 million shares worth $1.48 billion changing hands.

Preliminary market turnover was 1.04 billion shares worth $5.02 billion with 492 stocks higher, 521 lower and 333 steady.

- AAP